The Nasdaq

The nasdaq has been consolidating for the past few weeks...In fact, the nasdaq is trading within the range of the first 3 days of the month.. If you look at the above chart you will see an eight month daily nasdaq chart. In the lower panel is the bollinger band width which is bascially showing how far apart the bollinger bands are.. The bollinger bands are not shown on the above chart to avoid too many lines.. Notice when the BB Width is low, the nasdaq is consolidating or contracting.. Right now we have one of the lowest readings on the chart..Trending moves are usually born from such low readings.. Normally I'd be on alert for a trending move, but because it's December, my gut feeling tells me we will continue to go sideways for the remainder of the month.. This usually happens every year at this time as volume dries up... I'll still watch for a breakout just incase a move does happen before January, but experience tells me not to hold my breath waiting..